PGE to take full ownership of nuclear project company

In October 2022, Poland's Ministry of State Assets, South Korea's Ministry of Trade, Industry and Energy, ZE PAK and PGE, and Korea Hydro & Nuclear Power signed a letter of intent to develop plans for a nuclear power plant in Pątnów.

PGE PAK Energia Jądrowa is a 50/50 joint venture special purpose vehicle formed in April 2023 by ZE PAK and PGE to implement the project. The joint company will represent the Polish side at all stages of the project, including the execution of the siting and environmental studies, acquiring financing, and the preparation of a detailed investment schedule together with the Korean side, but also in the subsequent stages, obtaining permits and administrative decisions.

PGE - the largest power producing company in Poland - has now signed a preliminary conditional agreement with ZE PAK for the purchase of its 50% stake in PGE PAK Energia Jądrowa.

"The provisions of the Preliminary Agreement stipulate that the transaction, as a result of which PGE will become the sole shareholder of PGE PAK EJ, will be completed after the condition precedent is met, which is PGE receiving an unconditional decision of the minister responsible for energy resources management regarding the consent for PGE to achieve a dominant position in PGE PAK EJ, consisting in PGE taking control of PGE PAK EJ, in accordance with Article 3f Section 1 of the Act of June 29, 2011 on the preparation and implementation of investments in nuclear power facilities and associated investments," the agreement states. "The conclusion of the final agreement for the sale ... should take place no later than 27 November 2025."

In a post on X, PGE President Dariusz Marzec said: "The acquisition by PGE of 50% of the shares in PGE PAK EJ, and thus PGE obtaining 100% ownership, gives us full control over its operations and enables the undertaking of actions and decisions related to conducting research and analyses concerning the second nuclear power plant. The knowledge and expertise possessed by the team of specialists gathered in the company are key to implementing tasks related to assessing the possibilities of locating a nuclear power plant in Bełchatów and an SMR reactor in Turow."

In November 2022, the Polish government announced the first plant, with a capacity of 3750 MWe, would be built in Pomerania using AP1000 technology from the US company Westinghouse. A decision-in-principle for that project was issued in July the year.

PGE PAK Energia Jądrowa submitted an application for Poland's second nuclear power plant to the Ministry of Climate and Environment in August 2023. The application included a description of project characteristics, indicating the maximum installed capacity, the planned operating period and details of the APR1400 technology to be used in the construction of the plant. According to the application, the two units will generate 22 TWh of electricity annually, which corresponds to 12% of the current electricity demand in Poland. The ministry issued a decision-in-principle for the project later that year.